LEADER IN INFECTION CONTROL SOLUTIONS Addressing the need for safer, faster and eco-friendly high level disinfection of ultra sound probes For personal use only
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Slide 1LEADER IN INFECTION CONTROL SOLUTIONS Addressing the need
for safer, faster and eco-friendly high level
disinfection of ultra sound probes
F or
p er
so na
y
2
Disclaimer
This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs of any individual or organisation. Certain information may relate to protected intellectual property rights owned by Nanosonics (the “Company”). While Nanosonics has taken due care in compiling the information, neither the Company nor its officers or advisors or any other person warrants the accuracy, reliability, completeness or timeliness of the information or guarantees the commercial or investment performance of the Company. The information does not constitute advice of any kind and should not be relied on as such. Investors must make their own independent assessment of the Company and undertake such additional enquiries as they deem necessary or appropriate for their own investment purposes. Any and all use of the information is at your own risk.
F or
p er
so na
First product, trophon ®
EPR for disinfection of ultra sound probes
trophon EPR approved for sale in major western markets (incl. US)
Achieved significant market penetration in Australia (>30%)
GE Healthcare exclusive distributor in North America
Revenue increased from A$2.2m to A$12.3m in 1 st year of North American launch (FY12)
Accelerating sales in North America and expanding to other regions
Strong Balance Sheet – cash A$24.9m as at March 2013
F or
p er
so na
EPR – the first fully automated system for high level
disinfection of ultra sound probes
Addresses unmet market need: current disinfection methods are antiquated, manual,
dangerous and inefficient
Strong regulatory, legal liability and economic drivers for adoption
Significant, global market > addressable market for device in US alone worth $400M
Attractive business model > up front sale and ongoing revenue from consumables and service
trophon ®
EPR rapidly achieving market adoption: “Standard of Care”
− ~A$10m revenue in North America in first full year of sales (FY12)
− Several leading sites have already adopted
Pipeline of further product development opportunities – core patents until 2025 F or
p er
so na
Temperature Disinfection
liquid into nano-sized droplets
disinfected
Nano-nebulant evaporates
ready to use
Disinfection)
− Not an option from many disinfection requirements
− Heat / pressure destroys electrical equipment or
sensitive environments
Chemical Soak
Unchanged for 20+ years
Safe
− Compatible with all makes of probes
− Saves time, infrastructure and cost
Low temperature high level disinfection for intra-cavity ultrasound probes
F or
p er
so na
Regulatory
− Compliance to 2008 US CDC Guidelines for disinfection / sterilisation
− FDA communication – probe must be completely immersed for effective high level
disinfection
Focus on reducing Hospital Acquired Infections (HAI)
− Key metric of hospital performance
− Hospitals bear the additional cost of treating patients for HAI
Compelling economics
− Increased revenue
− Decreased costs
− Preserves life of probes
− Equivalent sized markets in both Europe and RoW
Current end sale price ~ US$10,000 per unit
− average consumables ~ $3,000pa
accessories
Main customer groups
Siemens 17%
Toshiba 14%
major western markets
Exclusive North American distribution with GE
Healthcare
distribution partner in UK
and New Zealand
penetration
Japan
Toshiba
service contracts
Each unit sale results in robust annuity type revenue streams moving forward
Figures refer to % of revenue F or
p er
so na
y
Revenue $A'000 Year 1 Year 2 Year 3 Year 4 Total
Trophon 10.0 10.0
Chemical Indicator 0.3 0.3 0.3 0.3 1.4
3.3 3.3 3.3 3.3 13.3
Accessories
Printer 0.8 0.8
Software 0.7 0.7
Total Annual Revenue Potential 16.1 4.7 4.7 4.7 30.1
Average GM% 77% 87% 87% 87% 81%
12
or p
er so
Established strong market penetration in own domestic market
Good take up from major medical imaging providers such as I-Med
Europe and Asia
European adoption previously hampered by disparate distribution arrangements
Targeting a more focused approach into select European and Asian markets
North America
EPR in July 2011
Approximately A$10m revenue in North America in 1st year launch (FY12)
Many leading sites have already adopted
F or
p er
so na
North America
Revenue by Market North American IB Growth Trajectory
Installed base
trophon® EPR entered Canadian Market
Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13
Expanded US sales team
Institution Units Location
MASSACHUSETTS GENERAL 26 Boston, MA
JOHNS HOPKINS 20 Baltimore, MD
BETH ISRAEL DEACONESS MEDICAL CENTER INC 38 Boston, MA
WALTER REED NATIONAL MILITARY MEDICAL CENTER 8 Bethesda, MD
MONTEFIORE MEDICAL CENTER - EINSTEIN DIVISION 23 Bronx, NY
KAPIOLANI MEDICAL CENTER FOR WOMEN & CHILDREN 11 Honolulu, HI
ALBERT EINSTEIN MEDICAL CENTER 6 Philadelphia, PA
MOUNT SINAI HOSPITAL 8 New York, NY
CALGARY RADIOLOGY 52 Calgary, Canada F or
p er
so na
16
− 80+ sites trialled
What the market is saying about trophon:
EFFICIENT: Independent cost / benefit analysis concludes trophon® EPR is
more efficient and easy to use – saves 7.5 hours per week
SAFE: “Trophon® EPR has answered our OH&S concerns – our staff are no
longer exposed to hazardous fumes (Sydney IVF)
EFFECTIVE: “It’s a whole new feeling of clean” (South Georgia Medical
Centre, US)
F or
p er
so na
y
17
Platform for Future Growth Utilising our strong IP position to develop extended applications for our
disinfection technology
− FY13 A$2m-A$3m budget on new product development
− ENT market and TEE (Trans oesophageal Echocardiography) probes
− Investigation of expanded application for NanoNebulant
Leverage our early success in local or North American markets to establish
trophon in other major regions
Europe
− UK and France immediate focus
− Toshiba appointed (April 2013) as non-exclusive distributor in the U.K
Asia
− Preparing for Singapore launch
FY13 Priorities / Upcoming milestones
Leverage investment in sales resources by NAN, GE and Toshiba to accelerate
growth in key markets of North America and Europe
Maximise penetration in home market – Australia and New Zealand
Build on early momentum in Hong Kong; launch in Singapore
Actively pursue Key Opinion Leader engagement and capitalise on regulatory
opportunities in Europe
Identify new product opportunities
Shares on issue ~261.6 million shares
Market capitalisation ~$120 million
Cash balance $24.9 million
Institutions 31%
Corporate 4%
Private Investors &
Others 37%
Mr Bernard Stang 10.97%
Mr Maurie Stang 10.87%
Mr Steve Kritzler 7.52%
Fisher Funds Management Limited 6.65% F or
p er
so na
Cost of Sales (284) (981) (4799)
Gross Profit 479 1,266 7,502
Over Income - Government Grants 161 – 150
Operating Expenses (8,827) (13,229) (12,634)
% Change y-o-y -11% 50% -4%
EBITDA (8,187) (11,963) (4,982)
EBIT (8,958) (12,973) (5,896)
PBT (8,173) (11,921) (5,310)
NPAT (8,173) (11,214) (4,679)
Cash and Cash Equivalents 21,144 12,356 29,310
% Change y-o-y 52% -42% 137%
F or
p er
so na
Jun 2012: GE A$7.5m
2001 2009 2012 2011
CEO and Executive Director
Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011
Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform
Has a PhD in medical research and over two decades experience in biotechnology
McGregor Grant
Joined Nanosonics in April 2011
15 years’ experience in senior roles in medical device and healthcare industries in Australia and the US
Previously worked for Coopers & Lybrand in Australia and Europe
Michael Potas
Joined Nanosonics in August 2006
More than 16 years’ experience in the development and commercialisation of new products and technologies
Instrumental in the research, design & development of the Trophon ®
EPR
Head of Manufacturing
Joined Nanosonics full time in April 2011 after 18 months on the Nanosonics advisory board
Over 12 years’ experience in the Medical Device industry as a leader of development, engineering and
production teams at ResMed
Over 11 years’ experience in in global medical device markets
Previously worked for Sonova Hearing Healthcare Group and as Regional Technical Service and Repair
Manager for Cochlear
Ronald J Bacskai
Joined Nanosonics in 2010 and is responsible for supporting Nanosonics’ operations in the United States
Extensive experience in marketing & sales and technology commercialisation in a number of different
industries
Quality Assurance Manager
9 years’ experience in quality assurance and regulatory affairs in globalised medical device companies
Specialises in establishing, developing and maintaining the quality management systems for medical device
manufacturers
Has held senior leadership roles in various international medical device companies in the past 11 years
Ruth Cremin
Regulatory Affairs Manager
Joined Nanosonics in June 2011 and has extensive regulatory affairs experience
Previously Senior Regulatory Affairs Specialist at Cochlear for the Asia Pacific Region, and also regulatory
and quality roles at Pfizer and Bio-Medical Research
F or
p er
so na
Appointed Non-Executive Chairman March 2007, Director since 2000
Entrepreneur with over 20 years of experience in building and managing companies in the healthcare and
biotechnology sector
Currently Non-Executive Chairman of Aeris Environmental Ltd. Owns 28.7M shares (10.9%) of Nanasonics
Ron Weinberger
Director
Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011
Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform
Has a PhD in medical research and over two decades experience in biotechnology
Richard England
Non-Executive Director
Chartered Accountant with over 30 years experience in accounting and financial services
Previously was Chairman of Gropep, and Director of ITL Ltd
Outside of the life sciences, Mr England has previously been Chairman of Ruralco Holdings and Chairman of
Chandler Macleod
David Fisher
Non-Executive Director
Over 25 years' experience in the biotechnology and healthcare industry in Australia and overseas
Founding partner of Brandon Capital Partners, a leading venture capital firm which specialises in
investments in the Life Sciences sector
Previously CEO of Peptech, which was acquired by US-based Cephalon, and Pharmacia, which is now part
of Pfizer
Michael Kavanagh
Non-Executive Director
Over 20 years’ experience in healthcare marketing
Currently Senior Vice President of Global Marketing for Cochlear which he has held for more than 9 years
Currently has no other directorship F or
p er
so na
disinfection of ultra sound probes
F or
p er
so na
y
2
Disclaimer
This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs of any individual or organisation. Certain information may relate to protected intellectual property rights owned by Nanosonics (the “Company”). While Nanosonics has taken due care in compiling the information, neither the Company nor its officers or advisors or any other person warrants the accuracy, reliability, completeness or timeliness of the information or guarantees the commercial or investment performance of the Company. The information does not constitute advice of any kind and should not be relied on as such. Investors must make their own independent assessment of the Company and undertake such additional enquiries as they deem necessary or appropriate for their own investment purposes. Any and all use of the information is at your own risk.
F or
p er
so na
First product, trophon ®
EPR for disinfection of ultra sound probes
trophon EPR approved for sale in major western markets (incl. US)
Achieved significant market penetration in Australia (>30%)
GE Healthcare exclusive distributor in North America
Revenue increased from A$2.2m to A$12.3m in 1 st year of North American launch (FY12)
Accelerating sales in North America and expanding to other regions
Strong Balance Sheet – cash A$24.9m as at March 2013
F or
p er
so na
EPR – the first fully automated system for high level
disinfection of ultra sound probes
Addresses unmet market need: current disinfection methods are antiquated, manual,
dangerous and inefficient
Strong regulatory, legal liability and economic drivers for adoption
Significant, global market > addressable market for device in US alone worth $400M
Attractive business model > up front sale and ongoing revenue from consumables and service
trophon ®
EPR rapidly achieving market adoption: “Standard of Care”
− ~A$10m revenue in North America in first full year of sales (FY12)
− Several leading sites have already adopted
Pipeline of further product development opportunities – core patents until 2025 F or
p er
so na
Temperature Disinfection
liquid into nano-sized droplets
disinfected
Nano-nebulant evaporates
ready to use
Disinfection)
− Not an option from many disinfection requirements
− Heat / pressure destroys electrical equipment or
sensitive environments
Chemical Soak
Unchanged for 20+ years
Safe
− Compatible with all makes of probes
− Saves time, infrastructure and cost
Low temperature high level disinfection for intra-cavity ultrasound probes
F or
p er
so na
Regulatory
− Compliance to 2008 US CDC Guidelines for disinfection / sterilisation
− FDA communication – probe must be completely immersed for effective high level
disinfection
Focus on reducing Hospital Acquired Infections (HAI)
− Key metric of hospital performance
− Hospitals bear the additional cost of treating patients for HAI
Compelling economics
− Increased revenue
− Decreased costs
− Preserves life of probes
− Equivalent sized markets in both Europe and RoW
Current end sale price ~ US$10,000 per unit
− average consumables ~ $3,000pa
accessories
Main customer groups
Siemens 17%
Toshiba 14%
major western markets
Exclusive North American distribution with GE
Healthcare
distribution partner in UK
and New Zealand
penetration
Japan
Toshiba
service contracts
Each unit sale results in robust annuity type revenue streams moving forward
Figures refer to % of revenue F or
p er
so na
y
Revenue $A'000 Year 1 Year 2 Year 3 Year 4 Total
Trophon 10.0 10.0
Chemical Indicator 0.3 0.3 0.3 0.3 1.4
3.3 3.3 3.3 3.3 13.3
Accessories
Printer 0.8 0.8
Software 0.7 0.7
Total Annual Revenue Potential 16.1 4.7 4.7 4.7 30.1
Average GM% 77% 87% 87% 87% 81%
12
or p
er so
Established strong market penetration in own domestic market
Good take up from major medical imaging providers such as I-Med
Europe and Asia
European adoption previously hampered by disparate distribution arrangements
Targeting a more focused approach into select European and Asian markets
North America
EPR in July 2011
Approximately A$10m revenue in North America in 1st year launch (FY12)
Many leading sites have already adopted
F or
p er
so na
North America
Revenue by Market North American IB Growth Trajectory
Installed base
trophon® EPR entered Canadian Market
Q4 FY11 Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13
Expanded US sales team
Institution Units Location
MASSACHUSETTS GENERAL 26 Boston, MA
JOHNS HOPKINS 20 Baltimore, MD
BETH ISRAEL DEACONESS MEDICAL CENTER INC 38 Boston, MA
WALTER REED NATIONAL MILITARY MEDICAL CENTER 8 Bethesda, MD
MONTEFIORE MEDICAL CENTER - EINSTEIN DIVISION 23 Bronx, NY
KAPIOLANI MEDICAL CENTER FOR WOMEN & CHILDREN 11 Honolulu, HI
ALBERT EINSTEIN MEDICAL CENTER 6 Philadelphia, PA
MOUNT SINAI HOSPITAL 8 New York, NY
CALGARY RADIOLOGY 52 Calgary, Canada F or
p er
so na
16
− 80+ sites trialled
What the market is saying about trophon:
EFFICIENT: Independent cost / benefit analysis concludes trophon® EPR is
more efficient and easy to use – saves 7.5 hours per week
SAFE: “Trophon® EPR has answered our OH&S concerns – our staff are no
longer exposed to hazardous fumes (Sydney IVF)
EFFECTIVE: “It’s a whole new feeling of clean” (South Georgia Medical
Centre, US)
F or
p er
so na
y
17
Platform for Future Growth Utilising our strong IP position to develop extended applications for our
disinfection technology
− FY13 A$2m-A$3m budget on new product development
− ENT market and TEE (Trans oesophageal Echocardiography) probes
− Investigation of expanded application for NanoNebulant
Leverage our early success in local or North American markets to establish
trophon in other major regions
Europe
− UK and France immediate focus
− Toshiba appointed (April 2013) as non-exclusive distributor in the U.K
Asia
− Preparing for Singapore launch
FY13 Priorities / Upcoming milestones
Leverage investment in sales resources by NAN, GE and Toshiba to accelerate
growth in key markets of North America and Europe
Maximise penetration in home market – Australia and New Zealand
Build on early momentum in Hong Kong; launch in Singapore
Actively pursue Key Opinion Leader engagement and capitalise on regulatory
opportunities in Europe
Identify new product opportunities
Shares on issue ~261.6 million shares
Market capitalisation ~$120 million
Cash balance $24.9 million
Institutions 31%
Corporate 4%
Private Investors &
Others 37%
Mr Bernard Stang 10.97%
Mr Maurie Stang 10.87%
Mr Steve Kritzler 7.52%
Fisher Funds Management Limited 6.65% F or
p er
so na
Cost of Sales (284) (981) (4799)
Gross Profit 479 1,266 7,502
Over Income - Government Grants 161 – 150
Operating Expenses (8,827) (13,229) (12,634)
% Change y-o-y -11% 50% -4%
EBITDA (8,187) (11,963) (4,982)
EBIT (8,958) (12,973) (5,896)
PBT (8,173) (11,921) (5,310)
NPAT (8,173) (11,214) (4,679)
Cash and Cash Equivalents 21,144 12,356 29,310
% Change y-o-y 52% -42% 137%
F or
p er
so na
Jun 2012: GE A$7.5m
2001 2009 2012 2011
CEO and Executive Director
Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011
Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform
Has a PhD in medical research and over two decades experience in biotechnology
McGregor Grant
Joined Nanosonics in April 2011
15 years’ experience in senior roles in medical device and healthcare industries in Australia and the US
Previously worked for Coopers & Lybrand in Australia and Europe
Michael Potas
Joined Nanosonics in August 2006
More than 16 years’ experience in the development and commercialisation of new products and technologies
Instrumental in the research, design & development of the Trophon ®
EPR
Head of Manufacturing
Joined Nanosonics full time in April 2011 after 18 months on the Nanosonics advisory board
Over 12 years’ experience in the Medical Device industry as a leader of development, engineering and
production teams at ResMed
Over 11 years’ experience in in global medical device markets
Previously worked for Sonova Hearing Healthcare Group and as Regional Technical Service and Repair
Manager for Cochlear
Ronald J Bacskai
Joined Nanosonics in 2010 and is responsible for supporting Nanosonics’ operations in the United States
Extensive experience in marketing & sales and technology commercialisation in a number of different
industries
Quality Assurance Manager
9 years’ experience in quality assurance and regulatory affairs in globalised medical device companies
Specialises in establishing, developing and maintaining the quality management systems for medical device
manufacturers
Has held senior leadership roles in various international medical device companies in the past 11 years
Ruth Cremin
Regulatory Affairs Manager
Joined Nanosonics in June 2011 and has extensive regulatory affairs experience
Previously Senior Regulatory Affairs Specialist at Cochlear for the Asia Pacific Region, and also regulatory
and quality roles at Pfizer and Bio-Medical Research
F or
p er
so na
Appointed Non-Executive Chairman March 2007, Director since 2000
Entrepreneur with over 20 years of experience in building and managing companies in the healthcare and
biotechnology sector
Currently Non-Executive Chairman of Aeris Environmental Ltd. Owns 28.7M shares (10.9%) of Nanasonics
Ron Weinberger
Director
Joined the company in August 2004 and was appointed Managing Director and CEO in December 2011
Co-inventor of several key Nanosonics’ inventions which underpin the company’s technology platform
Has a PhD in medical research and over two decades experience in biotechnology
Richard England
Non-Executive Director
Chartered Accountant with over 30 years experience in accounting and financial services
Previously was Chairman of Gropep, and Director of ITL Ltd
Outside of the life sciences, Mr England has previously been Chairman of Ruralco Holdings and Chairman of
Chandler Macleod
David Fisher
Non-Executive Director
Over 25 years' experience in the biotechnology and healthcare industry in Australia and overseas
Founding partner of Brandon Capital Partners, a leading venture capital firm which specialises in
investments in the Life Sciences sector
Previously CEO of Peptech, which was acquired by US-based Cephalon, and Pharmacia, which is now part
of Pfizer
Michael Kavanagh
Non-Executive Director
Over 20 years’ experience in healthcare marketing
Currently Senior Vice President of Global Marketing for Cochlear which he has held for more than 9 years
Currently has no other directorship F or
p er
so na
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